The Money Doctor - life health cover

By: Money Doctor  05/12/2011
Keywords: Insurance, financial advice, Types Of Cover

Here you will find all there is to know on the various personal risk insurances

·     

( pays out in the event of death )

·     

( covers most of hospitalisation and consultant expenses )

·     

(pays a lump sum in the event of contracting a major illness )

·     

( pays 75% of your monthly income if incapacitated )

·     

( covers against redundancy, sickness or accident for up to 12 months repayments)

Life cover

Let us remove the mystery surrounding life assurance, it is really very simple and with independent financial advice you can choose the type of cover that you require at a very competitive price.

Working with your Money Doctor Adviser you can

• select the correct amount of cover
• the correct product and term (years) that you require
• obtain a competitive quotation for your circumstances
• obtain an immediate online quotation


Quotation differences in excess of 90% have been noted when comparing quotations from one Assurance Company to another, so it is in your best interest to seek independent financial advice from your Money Doctor Adviser.


Types of Cover

When you are purchasing a life policy you can decide if you want the policy to cover one or more persons by defining the policy as follows:

Single life – you are insuring one life only

Joint Life – you are insuring all lives named on the policy, but the policy will only pay out on one of the insured parties named in the policy, the first person eligible to claim under the terms of the policy.

Dual life – you are insuring all lives named on the policy, and the policy will pay out on all of the insured parties named in the policy, even after it has paid a claim on another insured party named in the policy.

The full range of ‘life assurance’ products are available through Money Doctor, however these are the main product types selected / requested by our clients. In all cases you need to fully understand the policy conditions to insure that the product you are purchasing meets your needs, your Money Doctor Adviser can help you with this understanding.


Decreasing Term Assurance

The term ‘Mortgage Protection Insurance’ can best be described as any ‘life assurance’ required / accepted by a lender to support the loan they are providing to the borrower. The cheapest form of assurance to support your loan is ‘decreasing term’ assurance but you should consult your Money Doctor Adviser on the product most suitable to you and your family’s needs and circumstances.

You select an initial sum to be insured over an agreed term for a fixed monthly/annual premium. The sum insured decreases each year until the end of the term, at which time all insurance cover ceases. There are no savings associated with this product.

Main use / Advantage
This type of insurance is normally associated with mortgage lending and is generally the cheapest form of life assurance.


Level Term Assurance

The client selects the sum to be insured over an agreed term for a fixed monthly/annual premium. The sum insured is maintained throughout the agreed term at the end of which all insurance cover ceases. There are no savings associated with this product.

Main use / Advantage
This type of insurance is often associated with mortgage lending and with providing specific life cover for an agreed period. For many people it is an effective way of toping up ‘life cover’ while at the same time meeting lenders requirements associated with a mortgage.

This policy can be used to support future mortgage lending, in certain circumstances.


Convertible Term Assurance

You select an initial sum to be insured over an agreed term for a monthly/annual premium. The sum insured and type of policy is convertible within parameters set out in the policy by the assurance company. However, you can amend the term and cover provided on the basis of your ‘health status’ as defined by the assurance company at the time the policy was taken out. The premium you pay will be adjusted in line with the changes in your policy, based on your original ‘health status’. Savings can be associated with this product.

Main use / Advantage
This type of insurance is often associated with young professionals whose requirements will change as they progress through life. For many people it is an effective way insuring that the cost and / or availability of future life cover does not rise / or is un-available as a result of an unexpected health problem in future years. It is not usually associated with mortgage lending.


Whole of Life Assurance

You select the sum to be insured for a fixed monthly/annual premium. The sum insured is maintained throughout your life and you can build up an ‘investment’ amount, or ‘surrender value’ in the policy. So long as the policy has an investment value or you continue paying the premiums, which can increase or decrease over the years, the cover remains in force. Providing the policy remains in force up to your death it will pay out the agreed death benefit and any ‘investment’ value remaining to your beneficiaries. This can be an expensive form of life assurance.

Main use / Advantage
This type of insurance is often associated with ‘estate planning’ providing specific death benefit to meet inheritance costs. It is not normally associated with mortgage lending.

Health cover

Health insurance is insurance that pays for medical expenses. It is sometimes used more broadly to include insurance covering disability or long-term nursing or custodial care needs. It may be provided through a government-sponsored social insurance programme, but generally from private insurance companies. It may be purchased on a group basis (e.g., by a firm to cover its employees) or purchased by individual consumers. In each case, the covered groups or individuals pay premiums or taxes to help protect themselves from high or unexpected healthcare expenses. Similar benefits paying for medical expenses may also be provided through social welfare programs funded by the government.

By estimating the overall risk of healthcare expenses, a routine finance structure (such as a monthly premium or annual tax) can be developed, ensuring that money is available to pay for the healthcare benefits specified in the insurance agreement. The benefit is administered by one of three companies

·      VHI ( Voluntary Health Insurance )

·      Aviva Health Insurance

·      Quinn Healthcare

The Aviva Health vision, with whom Money Doctor holds an agency, is to innovate, educate and invest in better private healthcare to improve quality and length of life in Ireland .

They are the first Irish company to offer you health insurance plans tailored to your own specific needs. They have done this by working with Irish consumers and medical professionals to identify the different needs that we are all likely to experience. By recognising that everyone has different needs at different stages of their lives, they have been able to introduce three innovative health plans - the ‘me plan’, the ‘I plan’ and the ‘we plan’.

All of the plans offer you a choice of hospital cover, day-to-day cover, (which is for everyday health expenses such as visits to a G.P. or Physiotherapist), or both of these together. Again, the choice is yours.

Your ‘me plan’ hospital cover will include:

  * In patient cover which gives you total peace of mind
* Full cover for Cancer and Cardiac treatments in the Hospitals you select
* Full cover for Day case procedures
* Unique overseas cover giving you access to new or emerging surgical procedures
* Comprehensive stress related cover
* 24 hour access to our nurse-on-call service
* A range of excellent accident and emergency abroad benefits for you when on holiday
* A detailed range of outpatient benefits


Your ‘me plan’ day-to-day plan covers you for the expenses you incur when looking after your health on a day-to-day basis. You have cover for; GP, Dentist, Physiotherapist.


The ‘I plan’ has been deigned for those who are becoming increasingly aware of the importance of having health insurance. You can customise your plan to include the hospital cover or day to day cover or both. On the ‘I plan’ there are 5 levels of hospital cover.

Level 1 gives you access to a semi-private room in a public hospital,
Level 2 gives you access to a semi-private room in a private hospital,
Level 3 gives you access to a private room in a private hospital,
Level 4 gives you access to a semi-private room in a high tech hospital and
Level 5 gives you access to a private room in a high-tech hospital.


In addition to your accommodation, your ‘I plan’ hospital costs will include:

  * In patient cover which gives you total peace of mind
* Full cover for Cancer and Cardiac treatments in the Hospitals you select
* Full cover for Day case procedures
* Full cover for CT, PET and MRI scans
* Unique maternity benefits
* Unique overseas cover giving you access to new or emerging surgical procedures
* Comprehensive stress related cover
* Excellent cover for parent and child
* 24 hour access to our nurse-on-call service
* A range of excellent accident and emergency abroad benefits for you when on holiday
* A detailed range of outpatient benefits


Your ‘I plan’ day-to-day covers you for the expenses you incur when looking after your health on a day to day basis.

Aviva will give you €30 three times a year to visit your GP, Dentist, Physiotherapist and a wide range of alternative practitioners including dieticians and chiropractors.

Consider an average year where you may have 3 GP visits, 2 trips to the dentist, 2 Acupuncture sessions and 1 visit to a dietician. In this case you can claim up to €240 which is a saving of over €100 if you purchase day-to-day.

On the ‘we plan’ there are 5 levels of hospital cover.

Level 1 gives you access to a semi-private room in a public hospital,
Level 2 gives you access to a semi-private room in a private hospital,
Level 3 gives you access to a private room in a private hospital,
Level 4 gives you access to a semi-private room in a high tech hospital and
Level 5 gives you access to a private room in a high-tech hospital.

In addition to your accommodation, your ‘we plan’ hospital costs will include:

  * In patient cover which gives you total peace of mind
* Full cover for Cancer and Cardiac treatments in the Hospitals you select
* Full cover for Day case procedures
* Full cover for CT, PET and MRI scans
* Unique maternity benefits
* Unique overseas cover giving you access to new or emerging surgical procedures
* Comprehensive stress related cover
* Excellent cover for parent and child
* 24 hour access to our nurse-on-call service
* A range of excellent accident and emergency abroad benefits for you when on holiday
* A detailed range of outpatient benefits


Your ‘we plan’ day-to-day covers you for the expenses you incur when looking after your health on a day-to-day basis. Aviva will give you €30 three times a year to visit your GP, Dentist, Physiotherapist and a wide range of alternative practitioners. We offer unique kids benefits which include contributions towards an eye test, hearing test, speech therapy and child counselling

A unique benefit to the ‘we plan’ is that families can pool together their day-to-day benefits. This means for example that for a family of four, 2 adults and 2 children, you will be entitled to 12 GP visits. If one family member needs to use 10 of the GP visits they are entitled to do so and the outstanding 2 visits can be used however you wish.

Consider an average year where as a family of four you may have 10 GP visits, 6 trips to the dentist, 3 Physiotherapy sessions, 3 speech therapist sessions, 1 hearing test, 2 health screens, 3 trips to the dietician and 3 chiropractor visits. You will be able to claim € 970. Although each of their plans are aimed at a particular life stage they are all open to anyone at any stage in their life. The choice is yours. All of their plans offer you a choice of hospital cover, day-to-day cover, (which is for everyday health expenses such as visits to a G.P. or Physiotherapist), or both of these together. Again, the choice is yours.

Aviva Health offers access to 63 public hospitals, 36 private hospitals and 5 hospitals in Northern Ireland . They also provide cover for 433 convalescent homes located right around the country. In order to make treatment as stress free as possible they have instigated a direct settlement agreement with most of the private hospitals.

Aviva Health is the only health insurance company to be licensed by the Financial Regulator. In order to be awarded this licence they met all of their solvency, prudential and customer protection requirements. They are capitalised by Irish Institutional Investors. Munich Re, one of the largest Global reinsurers, reinsures their products.

Aviva Health is also regulated by the Health Insurance Authority whose mandate includes the protection of Community Rating. We are a registered insurer with the Insurance Ombudsman.

Serious Illness Cover

This product is often linked with a life assurance policy (Decreasing or Level term) but it is also available on a ‘stand alone’ basis. It pays out the agreed assured sum, for defined medical conditions at the time of diagnosis (subject to the terms and conditions of the policy) rather than on the death of the insured. Indeed, you can recover fully from your illness and still retain the amount ‘paid out’ by the policy.

However, where it is a combined ‘Life & Serious Illness Policy’ and a claim has been made and paid by the assurance company in respect of a ‘serious illness’, on the death of the insured no further benefit is payable to the insured party under the terms of the policy.

Main use / Advantage
It provides the additional assurance that should the insured person become ill with a defined medical condition that the benefit of the policy is paid during the lifetime of the insured rather than after their death. The funds can be used as the client wishes providing the policy has not been assigned to a lender, in which case only the amount of the policy, in excess of the outstanding borrowings, will be available to the insured person.

Income Protection

Often referred to as ‘Permanent Health Insurance’ or ‘PHI’ it is an insurance policy that protects your income or part of it, in the event of risks ‘pre-defined’ under the terms of the policy, such as disability, injury, accident or ill health. Generally you receive up to 75% of your normal income on a monthly basis from incapacitation until you are either ready to resume employment or your pension kicks in, whichever is the sooner.

• Acceptance is assessed through a proposal form.
• The initial premium can change during the lifetime of the policy.
• The amount of total benefit payable is defined at the start of the policy but can be increased, subject to the terms of the policy.

Other Benefits
- Hospital benefit
- Overseas benefit
- Change of Occupation
- Premium Protection
- Indexation ( can be linked to the Consumer Price Index )
- Benefits / Assistance while returning to work

• The eligibility to payments commences after a deferred period, for example after 13 / 26 or even 52 weeks.
• The cover continues until retirement age 60/65, but can be subject to medical review.

Main use / Advantage
Income Protection offers protection against income loss and is especially suitable for self-employed persons or for employees whose employers do not offer ‘income protection’ to employees for long-term illness or disability.

Repayment Protector

Loan Repayment Protection

An insurance policy that provides you with an income to meet your mortgage or other loan repayments in the event that you are sick, have an accident, made redundant or laid off from work. The product is usually sold as part of a Personal Loan or Mortgage package with the benefit paid either to the lending company or . The terms of the product offerings, in particular the terms of payment vary; so you should consult Money Doctor for independent financial advice.

To help you meet loan repayments at a time of unemployment, accident or redundancy. The main disadvantage is that the policy will only meet payments for a limited time, usually up to 12 months. Premiums on the policy can be increased or decreased as defined in the terms of the policy.

You should seek independent financial advice from Money Doctor before you take out or cancel a policy that provides you with ‘Repayment Protection’.

The information in this article was current at 02 Dec 2011

Keywords: financial advice, Insurance, Types Of Cover

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